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Hope for First Time Buyers as Nationwide and HSBC Push Through Mortgage Rate Cuts

Nationwide and HSBC cut fixed mortgage rates by up to 0.2 percentage points, offering new lows around 3.5% to attract borrowers amid weaker property transactions.

  • On Thursday Nationwide Building Society and HSBC cut mortgage rates, with Nationwide launching a market-leading 3.50% two-year deal for home movers with a 40% deposit.
  • Pricing followed lower gilt yields and swap-rate moves, and lenders cut rates to attract business after a base-rate cut last month.
  • Nationwide is cutting up to 0.2 percentage points for new and existing customers, first-time buyers’ fixed rates fell by up to 0.17% for up to 95% loan to value, and around 1.8 million borrowers face expiring fixed deals in 2026.
  • Analysts call it a price war and said it's `good news for borrowers`, as two more lenders cut rates and HSBC will reveal further cuts tomorrow.
  • Some experts are divided on how low rates will go, with prices at their lowest since 2022 and 7,000 plus rates available shaping a positive 2026.
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nationwide.co.uk broke the news in on Wednesday, January 14, 2026.
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